The Arkansas Recycling Equipment Tax Credit Program

The Recycling Equipment Tax Credit Program, created by Act 654 of 1993, encourages recycling by allowing Arkansas taxpayers a 30 percent
state income tax credit for the purchase of equipment used exclusively for collecting, separating, processing, modifying, converting, or treating solid waste
or for manufacturing products containing at least 50 percent recovered materials of which at least 10 percent is post-consumer waste. The cost of installation is
also eligible.

The tax credit reduces a participant's Arkansas income tax amount due by 30 percent of the amount paid for eligible recycling equipment and installation. For example,
if the total cost for equipment and installation is $10,000, the participant can subtract $3,000 from the amount he owes the state.

If you expect to purchase recycling equipment and want to find out if the purchase will meet the tax credit requirements, you can submit an Application for
Preliminary Approval to ADEQ at least 30 days before making the purchase.